Tag Archive for: oilproduction

Trump's promised deregulation in the oil and gas industry with faster permitting could hit a wall of continuously growing global supply.

Trump’s oil plans meet market glut in 2025

President-elect Donald Trump’s oil plans on policies could boost U.S. crude production beyond the currently estimated growth.

However, Trump’s vow to “drill, baby, drill” and the promised deregulation in the oil and gas industry with faster permitting could hit a wall of continuously growing global supply. This higher production from non-OPEC+ producers is set to tilt the market into a large surplus in 2025, even if OPEC+ keeps its current commitment to begin bringing back supply from April, analysts and forecasters say.

The current state of the oil market indicates a significant shift in the supply-demand equation, with projections suggesting that supply could surpass demand by approximately 1 million barrels per day (bpd) in the coming year. This oversupply scenario raises important questions regarding pricing dynamics and market stability, as an excess in supply often leads to downward pressure on oil prices. However, seasoned market observers are acutely aware that the interplay of geopolitics will significantly influence oil prices moving forward. Factors such as international relations, regulatory changes, and geopolitical tensions can create volatility that may counteract the anticipated supply surplus.

Geopolitical Factors

Among the myriad geopolitical factors at play, former President Trump’s have policies toward key oil-producing nations. This is specifically Iran, Venezuela, and Russia—emerge as the most significant wildcard influencing future market conditions. The potential for sanctions, trade agreements, or military actions could have far-reaching implications for global oil supply and pricing structures. Furthermore, the discussion surrounding tariffs on energy products could also reverberate through the American economy, affecting domestic energy prices and, by extension, the broader global economic landscape. As such, stakeholders across the energy sector must remain vigilant and adaptable, closely monitoring these developments to navigate the complexities of an evolving market environment.

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Source: Oil Price

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Exxon outperforms oil majors, rising 15% despite falling crude prices, with higher production growth and lower costs than rivals.

Exxon Mobil Corp. Beats Estimates on Higher Permian Basin Oil Production

Exxon Mobil Corp. has surpassed analysts’ expectations for the third quarter, driven by a notable increase in oil production from the U.S. Permian Basin, which effectively mitigated the impact of declining crude prices and tighter refining margins. The company reported earnings of $1.92 per share, exceeding the median analyst estimate of $1.87 as compiled by Bloomberg. This performance aligns with a broader trend among major oil companies, as both Chevron Corp. and Shell Plc also delivered results that exceeded market predictions, highlighting a resilient sector amid fluctuating commodity prices.

In a year marked by volatility in the global oil market, Exxon has emerged as the leading performer among major oil producers, with its stock rising over 15% despite a general downturn in international crude prices. This remarkable achievement underscores Exxon’s strategic focus on enhancing oil and natural gas production while reducing operational costs.

Exxon The Largest Energy Explorer

As North America’s largest energy explorer, the company has showcased an impressive capacity for not only expanding its production capabilities but also optimizing operational efficiencies that outpace those of its competitors. This strategic advantage is further underscored by a commitment to leveraging cutting-edge technologies and innovative practices that enhance resource extraction and management. By investing in advanced exploration techniques, the company has been able to identify and tap into previously untapped reserves, thereby significantly increasing its output. This proactive approach not only strengthens its market position but also ensures a sustainable and reliable supply of energy, which is crucial in meeting the growing demands of an ever-evolving energy landscape.

Moreover, the company’s ability to navigate the complexities of the current energy environment—characterized by fluctuating prices, regulatory challenges, and an increasing shift toward renewable energy sources—demonstrates its resilience and adaptability. In aligning its growth strategies with environmental sustainability goals, the company is also positioning itself as a forward-thinking leader in the industry.

By prioritizing investments in renewable energy initiatives and carbon reduction technologies, it not only meets regulatory requirements but also addresses the growing consumer demand for cleaner energy alternatives. This dual focus on traditional energy production and sustainable practices not only enhances the company’s reputation but also secures its future as a key player in the transitional energy economy.

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Source: Energy Connects

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OPEC+ made no changes to plans to start gradually reviving oil production towards the end of the year, despite signs of an impending surplus.

OPEC+ remains committed to reviving production despite possible surplus

A statement from 23-nation the group after an online monitoring meeting on Wednesday didn’t announce any alterations. Led by Saudi Arabia and Russia, OPEC+ plans a series of monthly increases beginning with a 180,000 bpd hike in December — two months later than originally scheduled because of fragile market sentiment.

Oil prices have rallied more than 5% in the past two days after Iran, an OPEC member, launched strikes against Israel in an escalation of the Middle East’s year-long conflict. But at around $75 a barrel, prices remain 14% down from July as traders focus on weak demand in China and swelling supplies from the Americas.

While the retreat offers relief to consumers after years of rampant inflation — and for central banks as they pivot to lowering interest rates — it poses a financial threat to the Organization of Petroleum Exporting Countries and its allies.

Saudi Arabia slashed growth forecasts this week and projected deeper budget deficits than previously estimated as the cost of efforts to overhaul the kingdom’s economy outpaces revenue. Russia, meanwhile, relies on energy income to finance President Vladimir Putin’s war against Ukraine.

JMMC meeting

The JMMC meeting on Wednesday mainly focused on the failure of Iraq, Kazakhstan and Russia. It is for the implementation of their agreed cutbacks, according to delegates who asked not to be identified.

While the countries “reiterated their strong commitment” to the agreement, they mostly continue to pump above their output quotas. They haven’t yet started extra cutbacks pledged as compensation for cheating. The countries held individual workshops to discuss output levels in September.

OPEC+ plans to restore roughly 2.2 MMbpd in monthly tranches between December and late 2025, and allow the United Arab Emirates to make an extra hike in recognition of its increased production capacity.

The alliance has several more weeks to decide whether to go ahead with the December increase. Ministers are scheduled to gather on Dec. 1 to review policy for next year.

With oil markets poised to deteriorate further, analysts including JPMorgan Chase & Co. and Citigroup Inc. have expressed skepticism. It is that OPEC+ will press on with its scheduled supply increases.

Consumption is due to grow by less than 1 MMbpd in 2025. Supplies are set to swell by 50% more. It wil be leaving a glut even if OPEC+ continues to restrain output. This is according to estimates from the International Energy Agency.

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Source: Oil & Gas 360

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Upstream oil and gas employment in Texas rose by 1,000 jobs month/month in August, marking a third straight month of sequential gains

Texas upstream employment swells amid soaring natural gas, oil production

Upstream oil and gas employment in Texas rose by 1,000 jobs month/month in August. It marks the third straight month of sequential gains. The Texas Oil & Gas Association (TXOGA) said and cited data from the Texas Workforce Commission.

“Month after month, Texas continues to demonstrate its strength as a production powerhouse. It is rising to meet the growing energy needs of our state, nation, and allies around the world”. This is what TXOGA President Todd Staples. says

“Upstream job growth reflects the sustained demand for these indispensable resources. It underscores the industry’s unwavering commitment to energy leadership. Morover, it is keeping Texas at the forefront of the global energy landscape.”

The group highlighted that since the pandemic-induced low point of September 2020, the industry has added 37,400 upstream jobs in the state, averaging growth of 791 jobs/month.

“Since the Covid low point, months with upstream oil and gas employment increases have outnumbered those with [decreases] by 36 to 11,” TXOGA researchers said. “These jobs pay among the highest wages in Texas, with employers in oil and natural gas paying an average salary of approximately $124,000 in 2023.”

The Texas Independent Producers and Royalty Owners Association (TIPRO) touted the job growth as well, noting that it was driven by the oilfield services segment.

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Source: NGI

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Record Oil Production

Record Oil Production in Permian and Bakken Basins

Despite the Biden-Harris administration’s stated objectives to phase out oil and gas production. This is in favor of more sustainable energy sources, recent developments in the Permian and Bakken basins illustrate a contrasting reality. Record oil production is happenning now. These regions, which are pivotal to the U.S. energy landscape, are currently experiencing oil and gas production rates that have not been witnessed in over 13 years. This resurgence in output underscores the complexities of transitioning to greener energy, as it appears that the demand for fossil fuels remains robust. Notably, the Macquarie Group has revised its forecasts, suggesting that U.S. crude production may outpace many analysts’ expectations, indicating a more resilient oil market than previously anticipated.

In the Midland Basin, which spans parts of Texas and New Mexico, operators—including several firms based in Oklahoma—have significantly intensified drilling activities. According to a report by Bloomberg, these companies drilled an impressive average of 47 miles of horizontal lateral wells during the year ending in June, marking a record high not seen since 2011.

The Ongoing Innovation

This remarkable achievement not only underscores the ongoing innovation and efficiency improvements within the energy sector but also provokes critical questions regarding the long-term implications for energy policy and environmental considerations. As production levels continue to rise, it is essential to recognize the transformative impact this growth may have on both local and global markets. Stakeholders—including policymakers, industry leaders, and environmental advocates—must engage in comprehensive dialogues to understand how these advancements can be strategically leveraged to meet increasing energy demands. Furthermore, this raises important inquiries about the sustainability of such production methods and the potential for technological solutions to mitigate adverse effects.

As the industry evolves, the challenge lies in navigating the intricate balance between satisfying immediate energy needs and committing to sustainable practices that align with broader climate goals. This includes exploring renewable energy sources, enhancing energy efficiency, and implementing responsible resource management. By fostering collaboration among diverse stakeholders, the sector can create a framework that not only prioritizes energy security but also promotes environmental stewardship. Therefore, the ongoing dialogue surrounding these developments is crucial, as it will determine the trajectory of energy policies and practices in the years to come, ultimately shaping a sustainable future for generations.

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Source: OK Energy Today

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Ovintiv Inc. is considering a possible sale of its operations in the Uinta basin, which could fetch as much as $2 billion

Ovintiv explores $2 billion Uinta basin business sale to focus on Permian shale operations

Ovintiv Inc. is considering a possible sale of its operations in the Uinta basin. This could fetch as much as $2 billion, people with knowledge of the matter said.

Denver-based Ovintiv is working with an adviser to gauge buyer interest in the asset. The people said they are asking not to be identified discussing confidential information.

Ovintiv’s operations in the Central basin of Utah involve drilling in about 2,600 feet of oil-saturated reservoir rock. This is according to its website. The asset could attract interest from private equity-backed energy groups, the people said.

Deliberations are in the early stages and there’s no certainty they’ll result in a transaction. A representative for Ovintiv declined to comment.

Ovintiv’s shares have fallen 12% over the last 12 months, underperforming the S&P 500 Energy Index and giving it a market value of about $11.2 billion. The company’s assets are spread across Texas, Oklahoma, Utah and Canada.

Selling its Utah assets would free up Ovintiv to focus on the Permian basin, the western hemisphere’s most productive shale fields that straddle Texas and New Mexico, where the driller last year expanded its footprint with a $4.3 billion acquisition from EnCap Investments. The company last year also completed the sale of assets in the Williston Basin of North Dakota for $825 million.

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Source: Oil&Gas 360

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New drilling technology

New drilling technology to put billions of barrels of oil in reach, analysts say

In a groundbreaking development for the oil industry, Chevron has announced a significant advancement in the extraction of crude oil. This is from ultra-high pressure fields of the new drilling technology.

Potentially unlocking up to 5 billion barrels of previously inaccessible resources. This revelation comes as Chevron successfully commenced oil production from its Anchor project. It is where the first well is operating at an unprecedented pressure of 20,000 pounds per square inch (psi). It is a remarkable increase of one-third over any prior well. The significance of this achievement cannot be overstated. This may reshape the landscape of oil production and expand the boundaries of what is currently considered recoverable oil.

The success of the Anchor project represents an investment of $5.7 billion. It provides an attribution to the deployment of cutting-edge technology. The design of the equipment is from industry leaders such as NOV, Dril-Quip, and Transocean. According to Bruce Niemeyer, the head of Americas oil exploration and production at Chevron, the company began pumping oil from the first Anchor well on Sunday. It is with preparations already underway for the activation of the second well. Drilling is ongoing and is nearing readiness. This innovative approach promises to enhance production capabilities and underscores Chevron’s commitment. This will leverage advanced technology to access complex and challenging oil reserves. Ultimately, it will be contributing to the energy security of the United States and the global market.

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Source: Natural Gas World

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US oil and gas

US oil and gas drilling activity sees rebound

The total number of active drilling rigs for oil and gas in the United States rose this week. This is according to new data that Baker Hughes published on Friday.

The total rig count rose by 2 to 586 this week, compared to 669 rigs this same time last year.

The number of oil rigs fell by 1 this week, falling by a single rig in the week prior. Oil rigs now stand at 477—down by 53 compared to this time last year. The number of gas rigs rose by 3 this week to 103, a loss of 28 active gas rigs from this time last year. Miscellaneous rigs stayed the same at 6.

Meanwhile, U.S. crude oil production rose 1 million bpd to 13.3 million bpd for for the week ending July 12. Current weekly oil production in the United States, according to the EIA, is now on par with the all-time high of 13.3 million bpd.

Primary Vision’s Frac Spread Count

Primary Vision’s Frac Spread Count an estimate of the number of crews. It is completing wells that are unfinished, fell in the week ending July 12, from 242 to 238.

Drilling activity in the Permian stayed the same this week at 305. This is a figure that is 28 fewer than this same time last year. The count in the Eagle Ford rose by 1 this week, rising to 49 after falling by 1 rig in the week prior. Rigs in the Eagle Ford are now 8 below where they were this time last year.Oil prices were down sharply on Friday. At 1:10 p.m. ET, the WTI benchmark was trading down $2.13 (-2.57%) on the day at $80.69. The Brent benchmark was trading down $1.99 (-2.34%) on the day at $83.12.

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Source: Oil Price

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The Permian basin is projected to produce around $350B in gross product and provide around 1.2M jobs for the nation’s economy by 2050.

Permian basin contributes over $100 billion, 800,000 jobs on leading US oil and gas production

The Permian basin continues to grow rapidly. It reflects the region’s importance as an economic powerhouse for Texas, New Mexico, and the country.

This year’s Economic Report from the Permian Strategic Partnership (PSP) highlights the region’s essential role in supporting critical government functions. These include road improvements, public schools and teachers, police and fire departments, community hospitals, and universities.

The report also emphasizes the area’s status as the second lowest producer of CO2 emissions per barrel of oil. This is equivalent among the major onshore producing basins worldwide.

As a world leader in oil production, the Permian basin is projected to produce around $350 billion in gross product. It provide around 1,200,000 jobs for the nation’s economy by 2050.

“The Permian basin provides indispensable resources to energy security, making significant contributions to our nation’s robust economy every year,” said Don Evans, Permian Strategic Partnership Chairman.

“As the world’s largest secure energy supply, our region is fundamental to our national, economic, and energy security. Texas and New Mexico can promote further growth and support the American economy in collaboration with the energy industry through investment and expansion of our region’s infrastructure.”

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Source: Oil & Gas 360

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Crude oil production in the Permian Basin is expected to rise by nearly 8% this year. It accounts for nearly half of US crude oil production.

EIA: Permian Basin to help drive record oil production levels in 2024, 2025

According to the U.S. Energy Information Administration (EIA), crude oil production in the Permian Basin, which spans western Texas and southeastern New Mexico, is expected to rise by nearly 8% this year. The basin accounts for nearly half of U.S. crude oil production.

On Tuesday (June 11), the EIA released the June Short-Term Energy Outlook that shows crude oil production in the Permian Basin will average about 6.3 million barrels per day in 2024, up almost 8% from 2023. The increased production in this and other regions will contribute to successive crude oil production records in the United States in 2024 and 2025.

The Energy Information Administration (EIA) has recently introduced an enhancement to its Short-Term Energy Outlook reports by incorporating detailed regional forecasts for the primary oil and natural gas production areas in the United States. This development reflects the agency’s commitment to providing a comprehensive and granular analysis of energy trends across the country. By specifically focusing on key regions such as Appalachia, Bakken, Eagle Ford, Haynesville, and Permian, the EIA aims to offer stakeholders, policymakers, and industry experts a more nuanced understanding of the dynamics shaping the energy landscape at a local level.

Inclusion of Regional Forecasts

The inclusion of these regional forecasts not only enables a more detailed assessment of production trends. Moreovre, it also facilitates a deeper exploration of factors influencing supply and demand dynamics in specific geographic areas. This new approach underscores the EIA’s dedication to delivering insights that support informed decision-making. The strategic planning within the energy sector is also seen. This sheds light on regional variations in oil and gas production. Also, the EIA’s expanded Short-Term Energy Outlook reports serve as a valuable resource for industry professionals. More are now seeking to navigate the complexities of the US energy market with greater precision and foresight.

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Source: TB&P

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